Reliance on Chinese Capital Can Hurt Indonesian Economy, Says Minister

Based on his evaluation, Indonesia must focus on attracting investments from other big economies, such as the United States and Japan.

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“Indonesia’s position typically leans towards Chinese dependency though maintaining positive relations with the United States and Japan is equally important,” Dahlil said.

Moreover, BKPM reported that it accomplished Rp 410 trillion of realized investment in June.

The figure is 58 percent of Indonesia’s total investment of Rp 708 trillion.

Dahlil affirmed that BKPM has facilitated various companies including Rosneft that invested Rp 211.9 trillion in Indonesia.

Other companies were Lotte Chemical with Rp 61.2 trillion of investments, Vale with Rp 39.2 trillion of investment, and Hyundai that contributed investments totaling Rp 21.7 trillion.

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Obstacles in reaching optimum realized investment in Indonesia came down to three factors, according to Dahlil.

First, the issue with sectoral allocation followed by an overlap between governors, regents, mayors, and the central government.